USD/CAD: Technical outlook and review.

Weekly Timeframe: The weekly timeframe shows that price is currently trading above the medium-term weekly high 1.12775. Ultimately, we would like to see the current weekly candle firmly close above this level, as this would likely confirm higher prices may be seen up to around a weekly supply area coming in at 1.17225-1.15417.

Daily Timeframe: Further U.S Dollar buying was seen yesterday on the daily timeframe , which consequently pushed price above the 1.13842 high. We are now going to watch this pair very closely for a retest of this high as support. In the event that it does, it may provide a nice base to look for lower-timeframe price action to go long. However, we also have to be prepared for this level to break, and further selling be seen down to test the more obvious medium-term weekly high 1.12775 as support. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: The 4hr timeframe shows that the 4hr supply area coming in at 1.13842-1.13352 was consumed. This should come as no surprise as this area was already weakened by the touch seen on the 16/10/2014 at 1.13601.

The 4hr decision-point demand area at 1.13387-1.13635 is what we have our eye on at the moment. This is where we believe a decision was likely made to break above the daily high (1.13842). This could effectively be a lovely area to go long from around 1.13671. However, we would advise waiting for some confirmation on the lower timeframes before entering long there, as we mustn't forget that price could indeed continue lower to test the medium-term weekly high (1.12775) as support, which is nicely located around a 4hr decision-point demand area seen below at 1.12624-1.12873 (active buy orders are seen just above at 1.12916).